Meet The Real Estate Agent Of The 21st Century

Lately, it’s been tough to escape the headlines questioning whether real estate agents as we know them are doomed. “Why do real estate agents still exist?” wondersThe Washington Post, while The Street asks, “Will real estate agents become obsolete?” These headlines might not sound very comforting, but I’d like to think that real estate agents aren’t going anywhere — their role is simply changing.

This may sound surprising coming from me, especially because the brokerage I founded doesn’t abide by traditional real estate rules. We, like a growing number of firms, only charge flat fees. We encourage buyers and sellers to talk to each other directly, incorporating as much or as little of an agent’s time as needed. And while the agent-centric model of real estate is certainly changing, advances in technology and the ability of agents to do their jobs more efficiently is a win-win for potential home buyers and sellers.

Embrace, don’t fight, technology.

So, what does the real estate agent of today look like? First and foremost, today’s agents take advantage of our digitized world and use available technology to do their jobs better. They work smarter, not harder. According to the National Association of Realtors, 95% of buyers use the internet during their home search. Since agents are doing less of the old-school stuff (finding listings, coordinating showings, flipping through a phonebook-sized MLS), they have more time to home in on customer service and, ultimately, streamline the home buying process. Technology-driven tools like e-signatures and virtual tours increase efficiencies and also save both agents and consumers time.

The home-buying and selling process isn’t an easy one and is even ranked asone of life’s most stressful situations. Although new technologies haven’t been openly embraced by some agents, it’s necessary to move the needle forward for the industry as a whole. Today’s consumers are busier than ever, and technology like virtual tours of houses allows them to see what a house looks like without having to make the drive. Agents can also expedite the process through updated transaction platforms that can allow buyers and sellers to talk directly to each other while also having the agent in their back pocket for important decisions.

Seek a consumer-centric model.

Today’s best agents also put their clients’ needs ahead of their own. While traditional agents may have said they worked for their clients best interests, most of the time, the agent-centric model dominated. Modern real estate agents understand the value of a client-centric model. Rather than work as independent contractors, I predict that more agents will seek more steady incomes, with commissions having a lesser impact on what agents ultimately take home. We’re trying to do our part by offering our agents competitive salaries, bonuses, full benefits and health insurance — no commissions pending.

While it’s not going to be an easy transition, the consumer-centric model is necessary to break the status quo and bring real estate back to what truly matters: the client and finding their perfect home. Agents can start by proactively making the effort to work as a team. This lessens the focus on how much money everyone’s making and what we can do to better the customer experience.

Chase the right home, not commissions.

In line with putting consumers’ interests first, today's agents — and the industry more broadly — will move away from traditional commissions and instead, look more to flat fees as the payment standard. A flat-fee model removes profit motivation, which in turn motivates agents to help clients find the right home in the right price range — rather than pushing for an expensive home and more commission in agents’ pockets. This will make for a better experience for would-be buyers and sellers, as there will be no second-guessing agent motivations.

But a flat-fee model doesn’t always work for everyone, and we understand that. Some buyers and sellers hold long-standing relationships with their brokers and aren’t looking for a change. Others are slower to open their arms to new technology and are comfortable with the way business is typically conducted. That’s OK. The industry has come a long way in the last few years, and the fact that a flat-fee model even exists represents the significant changes that real estate has — and will continue to — embrace.

While some agents are still stuck in the stone age, significant progress has been made on the path to modern real estate driven by technology. Those agents who are open to change will not just adapt but will thrive in today’s market.